The fund aims to achieve meaningful inflation-beating US$ returns over rolling five-year periods from a conservatively managed portfolio of global investments reflecting Foord's prevailing best investment view.
FOR SOUTH AFRICAN INVESTORS
• With a moderate risk profile
• Requiring diversification through investments not available in South Africa
• Seeking to hedge rand depreciation.
|Year||Fund Return %||Benchmark Return %||SA Inflation %|
|2006 (from 01/Mar)||24.9||28.4||5.0|
|2022 (to 30/Apr)||2.1||-13.7||1.9|
To achieve meaningful US inflation-beating ZAR equivalent returns over a full investment cycle.
Longer than three years.
1 March 2006
R50 000 lump sum or R1 000 per month
The portfolio may only invest in cash and one other collective investment scheme.
The Foord International Fund, in which the fund invests, does not distribute its income.
Marginal to zero income yield as the Foord International Fund is a roll-up fund and does not distribute its income.
Fully invested in the Foord International Fund, sub-fund of Foord SICAV, domiciled in Luxembourg.
|Risk of loss||
Currency volatility means risk of loss in the short term is high. In general, the risk of loss is lower than that of the average foreign equity fund.
|Security description||Asset class||Market||Portfolio weight %|
|ETFS Physical Gold||Commodity||GB||6.2|
|US Treasury 1.5% 29/02/2024||Bond||US||5.8|
|CVS Health Corp||Equity||US||4.8|
|Wheaton Precious Metals Corp||Equity||US||4.0|
|Johnson and Johnson||Equity||US||3.9|
|Roche Holding AG||Equity||CH||3.3|
Monthly Commentary – April 2022
- Global developed market equities (-8.3%) slumped on stubbornly high and seemingly accelerating inflation — the spike in the US 10-year yield affected long-duration growth stocks most, with the tech-heavy Nasdaq Composite dropping 13.3%, its worst monthly performance since October 2008
- Emerging markets (-5.6%) also fell, led by Brazilian equities (-13.7%) which retraced after a market-leading 1Q22 return (+35.9%) driven by the sustained rise in global commodity prices — while Chinese markets (-4.1%) fell on the negative growth effect of its continued zero-covid policy
- World bond markets (-5.9%) fell as developed market bond yields rose markedly on expectations of aggressive policy tightening — investors in US Treasuries are now pricing in additional interest rate hikes of 2.5% by the end of 2022
- Oil (+1.3%) gained marginally but was volatile intramonth with prices driven by uncertainty on supply, strategic reserves and Russian sanctions — soft commodities including wheat (+3.8%), soybean (+5.6%) and corn (+9.3%) rose as weather, the Ukraine war and high fertilizer costs were worries for crop yields
- Precious metals gold (-2.0%) and silver (-5.5%) declined —metals face competition from fixed interest instruments whose yields have finally risen on speculation for more aggressive US Federal Reserve tightening compared to prior expectations
- The US dollar rose materially against all major currencies including the euro (-5.2%), British pound (-4.6%) and Japanese yen (-6.3%) — widening interest rate differentials coupled with the currency’s safe-haven status have concurrently served to strengthen the greenback
- The fund’s hedges including the sizable short S&P 500 futures position (+8.9%) contributed materially to fund returns in the declining market — the investment global copper miner Freeport-McMoRan (-18.2%) detracted on falling copper prices
- The rand (-8.1% vs the US dollar) sharply retraced some of its recent gains in line with other emerging market commodity exporters and broad based US dollar strength — the currency is vulnerable to a reversal in the commodity export-driven terms of trade support
The standard charge rate is a fixed fee of 0.35% plus VAT. A 1.00% annual fee is levied in the Foord International Fund.
WHAT IF YOU HAD INVESTED WITH US IN THE PAST?
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